Lynn Transfers Land Having a $50,000 Adjusted Basis, an $80,000

question 80

Multiple Choice

Lynn transfers land having a $50,000 adjusted basis, an $80,000 FMV, and $10,000 cash to Allied Corporation in exchange for 100% of Allied's stock. The corporation assumes the $70,000 mortgage on the land. Which of the following statements is correct?

• A)Lynn recognizes no gain and the stock basis is $60,000.
• B)Lynn recognizes a $10,000 gain and the stock basis is $60,000.
• C)Lynn recognizes no gain and the stock basis is $50,000.
• D)Lynn recognizes a $10,000 gain and the stock basis is zero.

---

Definitions:

Impaired Social Interaction

Difficulty in engaging and interacting effectively with others, leading to social isolation or reduced social networks.

Caregiver Role Strain

The emotional and physical stress experienced by an individual due to the demands of caring for another person, often leading to burnout and health issues.

Unilateral Neglect

A neurological condition where a person does not attend to or respond to stimuli presented on one side of the body or space, usually resulting from a brain injury.

Elderly Parents

Elderly parents are individuals of advanced age, often requiring special care and attention due to various age-related health and mobility issues.